Business/NGO Engagement and Partnerships Presentation February 2011

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Lecture given to MSc class at Birkbeck College, University of London Corporate Responsibility module. Focuses on why and how business and NGOs engage, and partner, on corporate responsibility, and sustainability/environment issues and problems

Business

Stakeholder relations seen as a crucial element of CSR. Scholars (e.g. Freeman, Carroll, Epstein, Hartman and Stafford, Waddock et. Al.) assume CSR can only be fully developed in partnership whereby the exploration of new roles is a central element

In 1900, 100 International NGOs. By 1998 more than 50,000 in existence,[object Object]

1992 UN Conference on Environment and Development (Rio), 2002 World Summit on Sustainable Development (Johannesburg)

Key events in 1990’s and 2000’s showed importance of dialogue and engagement (Brent Spar, Nigeria, sweatshop scandals, HIV/Aids pharmaceutical NGO campaigns in 2001 etc)Partial Source: “Partnerships for Corporate Social Responsibility” (de Bruin, Nijhof, Honders 1997)

Global markets remain politically under-governed in a political sense

CSR and business self-regulation have rapidly expanded, and become a “megatrend”Source: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418

In a partnering role, “governments may bring in complementary competencies and resources to tackle social and environmental issues outside their unilateral authoritative control” – in partnership with companiesSource: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418

Some background & examples ,[object Object]

EU: A billion Euros a year of illegal timber (WWF 2010) 10% of US imports illegal!

Est.1993 FSC developed set of principles and criteria for forest management that address legal issues, indigenous rights, labor rights, and environmental impacts

2008 US Lacey Act being enforced. EU rules from 2012, 15-20 years on from FSC!(2010: 37 corporate members of WWF’s Global Forest and Trade Network)

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Corporates have the reason, means and tools to facilitate the Sustainable Development, NGOs have the knowledge, empathy and bandwidth to reach the core issues at grassroots and solve them and Government has the authority and mechanism to govern the progress, keep it on track and above all the structure to initiate, facilitate, measure, review and retain all projects in control. A Creative and little liberal collaboration of Corporates’ CSR policy, reviewed for compliance with the legislative regulations and implementation of it by NGOs through Social Development Projects is the only win-win situation at the given point of time.

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The objective of this research project is to analyze the opportunities in NGO and Government Sector for a marketing service provider. The research also focuses on deriving value addition to these clients in terms of cost and quality. Competitor analysis is an important aspect of this research. The methodology followed for this research included two parts such as qualitative followed by quantitative research through one to one interview. Stratified sampling and convenient sampling were preferred for NGOs and Government Sector respectively. Using Factor Analysis three factors were found for NGOs which are Planning & Execution, Technological efficiency and Recruitment and can be outsourced. There are only 10% of NGOs who outsource events whereas 37% want to outsource and rest don’t need any service. Free service is their prime expectation from any service provider. In case of Government Sector perceptual mapping was done to find their perception regarding the efficiency of their current event management process so that their weaknesses could be considered while developing a strategy to approach them. Technology based services like social media promotion, website management, online event planner can be the major value additions to both NGOs and Government Sector as it is still unconquered by them. From competitor analysis it was found that there are some players in the market who provides free services to NGOs. In government sector many of the competitors are having either long term attachment or doing it through tender and bidding. It is recommended that a marketing service provider should not go for NGOs segment as the margin is less and there are competitors providing free services. For Government sector, it should always hire local language speaking people to deal and it should convey the value addition that can be provided in terms of technology, cost and quality.

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Business/NGO Engagement and Partnerships Presentation February 2011

1. Business, NGOs, campaigns and partnerships: The road to engagement Toby Webb, Founder, Ethical Corporation.MSc Corporate Governance and Ethics class, Corporate Responsibility module, Birkbeck College, University of London, January 27 2011 ethicalcorp.blogspot.com / ethicalcorp.com

4. Stakeholder relations seen as a crucial element of CSR. Scholars (e.g. Freeman, Carroll, Epstein, Hartman and Stafford, Waddock et. Al.) assume CSR can only be fully developed in partnership whereby the exploration of new roles is a central element

7. 1992 UN Conference on Environment and Development (Rio), 2002 World Summit on Sustainable Development (Johannesburg)

8. Key events in 1990’s and 2000’s showed importance of dialogue and engagement (Brent Spar, Nigeria, sweatshop scandals, HIV/Aids pharmaceutical NGO campaigns in 2001 etc)Partial Source: “Partnerships for Corporate Social Responsibility” (de Bruin, Nijhof, Honders 1997)

10.

11. Global markets remain politically under-governed in a political sense

12. CSR and business self-regulation have rapidly expanded, and become a “megatrend”Source: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418

13.

14.

15. In a partnering role, “governments may bring in complementary competencies and resources to tackle social and environmental issues outside their unilateral authoritative control” – in partnership with companiesSource: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418

16.

17.

18. EU: A billion Euros a year of illegal timber (WWF 2010) 10% of US imports illegal!

19. Est.1993 FSC developed set of principles and criteria for forest management that address legal issues, indigenous rights, labor rights, and environmental impacts

20. 2008 US Lacey Act being enforced. EU rules from 2012, 15-20 years on from FSC!(2010: 37 corporate members of WWF’s Global Forest and Trade Network)

21. Extractive Industries’ Transparency Initiative (EITI), launched in 2002 in Johannesburg at the World Summit on Sustainable Development. (Partial success)

22.

23.

24. Friends of the Earth: “Boots Pollutes” / Climate change / GM

25. WWF: Shell / Coca-Cola / SAB Miller

26. Global Witness: Extractive transparency – Europe & US

27. Transparency International: Corruption - Globally

28. Clean Clothes Campaign: Textile workers in Europe

29. Workers Rights Consortium: Textile workers in the USA

30.

31.

32. Fairtrade: Tate & Lyle/Cadbury (sugar & cocoa)

33. Climate Group: HSBC (Research and policy)

34. Marine Stewardship Council: Findus & Wal-Mart

35. Forest Stewardship Council: TetraPak & IKEA

36.

37. Nestle and the Tropical Forest Trust (Palm Oil)

38. UNEP & Shell (2010) – Nigeria controversy

39. UNDP and Statoil (1999-2004) Plus MANY others (Business Action for Africa, UNDP reports)

40.

41.

42. Clear boundaries

43. An end in sight: How long does it run for?

44. Grievance mechanisms

45. Transparent reporting

46. Agreed outcomes

47.

48. Companies with high impact but outside the list of big brands: Fish, Leather, Soy, Commodities, Mining, Finance, Timber, Oil & Gas, Electronics, textiles, etc etc!

49. Industry groups on commodities

50.

51. Partnerships can and do come to an end

52. Transparency: They do not report

53. Trust: Companies are suspicious

54. Shifting goals: Going where the money is

55. Becoming co-oped by business for cash (WWF?)

56. Annoying governments in dev. Countries (China)

57. Measurement: Can they prove they have delivered?

58. SCALE: Can they deliver more in commodities?

Business/NGO Engagement and Partnerships Presentation February 2011

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